Sunday, July 24, 2011

Current Position & Next Step

Here are my stock holdings

Mencast Holdings - 1000 shares

Cambridge Industrial Trust (REIT) - 10000 shares

Starhill Global (REIT) - 10000 shares

Next move: I am selling 1000 shares of Mencast on next Monday (tomorrow). The reason is that I purchased this stock at $0.38 per share and now it has skyrocketed up to $0.535. Mencast stock has breached both the NAV of $0.238 and the intrinsic value of $0.22, which is overvalued. I believe this stock is going through a market correction soon. Before that happens, I will take my 40% profit and run away!

With the clearance of Mencast Holdings from my list, I am left with only 2 strongholds. It sounds very risky to just focus on 2 stocks that are not even blue chips. But don't worry about that, I have spent many hours reading through their annual reports and analysed their charts using technical analysis. I must say they are pretty stable as of now. I am casting my hindsight on juicy REITs like Parkway Life, and MappleTree Commercial.

Parkway Life - hospitals, which means it is stable even in difficult times (people still need to visit hospitals for their medical appointments, illness, treatments, etc). But this REIT stock is very overvalued now ($1.84). Parkway Life's price is still increasing but I foresee a sharp drop on its price soon due to decreasing volume.

MappleTree Commercial - owns mega-shopping malls like Vivocity. This REIT stock is fairly-valued as of now ($0.885). I believe it may go through a market correction soon as its volume is decreasing.

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